Which of the following is the correct explanation for inflation in India?

Low rate of production and high population growth

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High rate of production and high population growth

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High rate of production and low population growth

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Low rate of production and low population growth

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Solution

The correct option is A
Low rate of production and high population growth

Owing to low rate of production and high population growth, less developed economies like India experience a situation of persistent rise in prices. This leads to inflation.

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Which of the following is the correct explanation for inflation in India?

The correct option is A Low rate of production and high population growth Owing to low rate of production and high population growth, less developed economies like India experience a situation of persistent rise in prices. This leads to inflation.

The correct option is A
Low rate of production and high population growth

Owing to low rate of production and high population growth, less developed economies like India experience a situation of persistent rise in prices. This leads to inflation.